Gold Prices Soar Up in Vietnam Despite Global Falls
Gold price went up VND60,000 to VND18.36 million (US$1,140) per tael on Thursday morning in Vietnam despite falling in the world market, the Youth newspaper reported on June 6.
Domestic price has been free of the world's price impacts because local companies all have used the VND/USD exchange rate, which surpassed VND18,000 benchmark to reach VND18,200/US$1 on June 5, to calculate the selling gold prices.
By using the VND/USD rate, gold trading companies, which imported gold when the price was higher than US$900/oz, can avoid losses amid recent sharp decrease in global gold prices.
Gold import tax and gold import license are also the main factors for domestic gold price rises although they will not have big impacts on gold prices in the immediate time, the source said.
The import tax alone, which has increased from 0.5 per cent to 1 per cent as decided recently by the Ministry of Finance, would make the domestic price different by 1 per cent from the world’s price.
Regarding the gold import license, experts say that this will not much affect the domestic market in the coming time as companies do not have a demand for importing more gold at the moment.
However, they said that in the long term, the licensing will serve as a factor that makes domestic prices different from the world’s prices.
The world’s gold price has dropped US$14/oz to US$877/oz since the speech by the US FED’s Ben Bernanke. Since the speech, the dollar price has soared to the highest peak in the last two weeks, while pushing crude oil prices down again. (Youth)
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